2024-03-15 22:47:22 ET
Summary
- ZoomInfo's share price has declined over 10% this year, driven by rapidly slowing growth rates.
- The company's minimal growth projections for FY24 and overexposure to the software industry are red flags for investors.
- ZI faces tough competition in the CRM software market and has a large debt load.
- Its valuation at ~5x revenue isn't cheap enough to warrant an investment.
In today's very expensive stock market, investors are demanding terrific results to justify valuation premiums; and in the tech sector where headcount reductions and sales slowdowns have become the norm rather than the exception, stocks have seen wild swings in in the Q4 earnings season....
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ZoomInfo: Meager Growth Spells Problems